Reduce risk after a gap opening?

Forums ProRealTime English forum General trading discussions Reduce risk after a gap opening?

Currently, there are 0 users and 1 guest visiting this topic.
View all attachments
Viewing 5 posts - 1 through 5 (of 5 total)
  • #191944 Report

    Hi fellow technical traders,

    It regularly happens to me that the price opens after a gap below or above my stop loss order, so that the order is filled much lower/higher and the losses are always higher than planned.

    It might be an idea to double the number of shares for the Stop Loss order so that when the order is filled, the remainding shares are immediately triggered into a short/long order to reduce the loss slightly by hedging after you close the trade manually at the end of the price decline/rise, or the candle close.

    What are your thougts on this process?

    #191947 Report

    Sounds good … ideal scenario to test out using Pro-order / backtest etc?

    Can you code it? If not, then some kind soul might help you?

    #191948 Report

    Is this what you mean?

     

    #191979 Report
    JS

    Hi @marcelvanvliettrading

    I probably don’t understand what you mean but suppose you double the number of contracts for your StopLoss and you are Long on market and your StopLoss is hit by a “gap below” then your Long position is closed and a Short position is opened.

    Now your short on market and so your expectation is that after the “gap below” the price will fall further??

     

    #192570 Report

    Hi JS, Yes only to reverse at any point, but most of the time the price descends further, so your lost of the first rally against your position becomes somewhat smaller.

Viewing 5 posts - 1 through 5 (of 5 total)

Create your free account now and post your request to benefit from the help of the community
Register or Login